Ethereum ETPs Eclipse Bitcoin in Trading Volume for the First Time
For the first time in history, Ethereum’s traded volume of exchange-traded products (ETPs) accounted for more shares than Bitcoin’s, according to a recent Coinshare report.
Has Bitcoin’s Flippening Finally Happened?
The “flippening” refers to that moment in history when Ethereum will overtake Bitcoin as the leading cryptocurrency in the world. The “term” has been hushed, shushed, passed around, and peddled in low tones by many crypto enthusiasts for almost a decade, but talk of Ethereum finally flippening Bitcoin has become more common in the past month. Tom Tugendhat, member of the UK’s parliament, only spoke about it today.
Also hours before today, May 21st, Ethereum toppled Bitcoin in its share of Coinshare’s ETP trading volume. Coinshare, the largest digital asset investment firm in Europe, revealed a record total trading volume of ETPs on Friday of more than $490 million, with Ethereum snagging more than 63% of that figure.
For the first time.
“In recent weeks Bitcoin investment products have seen net outflows for the first time, while Ethereum investment products have continued to see net inflows,” Coinshare’s report reads.
Coinshare believes the recent Ethereum milestone reflects increased investor interest in a wider range of digital assets beyond just bitcoin, and also emphasizes a growing market participation.
According to Coinshare, Ethereum investment products accounted for $312 million, 26 percent more than Bitcoin’s. Bitcoin, Litecoin, and Ripple’s exposures combined all accounted for $179 million of Coinshare’s ETP trading volume. This is the first time Bitcoin joins “the rest of the bunch”, as Ethereum sits comfortably as the leading digital asset. Only on Coinshare trading volumes, of course! But are these signs of times to come?
Analysts Speak: The Future of Ethereum
While Ethereum’s ETP milestone might not have been predicted, there have been suggestions that Ethereum would start to receive more attention than its older pal.
Prior to Coinshare’s report, Aya Kantorovich, a crypto expert at FalconX, asserted that there would be migrations from Bitcoin to Ethereum rather sooner than later, suggesting that institutions would get “tired” of the leading cryptocurrency and would go in search of alternatives. Ethereum, she believes, would lead that bunch of alternatives.
“They’ve just started understanding,” says Kantorovich. “They just finished…with bitcoin. Now doing that with Ethereum is going to be really easy!”
Ethereum has a more underlying infrastructure to receive investments from institutions, according to Kantorovich. The crypto expert also predicts more investment as Ethereum undergoes upgrades and changes.
It is worthy of note that Ethereum hit this milestone on a volatile market day. Bitcoin floundered, Ethereum also floundered, but it hardly matters now. There are voices speaking up; they are no longer hushed. They are loud, and not particularly suggestive. Tom Tugendhat, member of the UK Parliament, is just one person who has recently advised nations to implement more innovations in the financial sphere, while focusing on Ether rather than Bitcoin. There will be more after Coinshare. There will be more after Tom Tugendhat.